Analyst: Apple, AT&T considering iPhone rebates, subsidies

Apple Store“Several recent developments on Apple’s iPhone strategy have compelled one analyst to raise his estimates and price target on shares of the company, such as word that the iPod maker is seriously considering a move to subsidize the cost of the handset through rebates or other means,” Katie Marsal reports for AppleInsider.

Marsal reports, “In an in-depth research note released to clients on Tuesday, American Technology analyst Shaw Wu cited sources who indicate that a mail-in rebate or carrier subsidy for iPhone of $50-150 is under serious consideration by the Cupertino-based electronics firm.”

“‘We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts,’ the analyst wrote. ‘From AT&T’s perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in ‘guaranteed’ bi-annual revenue,'” Marsal reports.

Full article here.

24 Comments

  1. Watch for a lot of speculation, FUD, projections, rumors, indications, assumptions, etc. as iPhone nears.

    Pro stock speculators and hedgies have a long, long list of tricks up their sleeves to start their manipulation now. Here it comes.

    One online asslick already starts their column by saying ‘the iPhone deadline of June 11th’. No such deadline … a rumor that has now become a journalista legend.

  2. WTF? A data plan for slow ass EDGE better be cheap. Sprint in the US has unlimited data for $15 per month, and there’s no way in hell that I’d pay more for slow ass EDGE data for two years.

  3. Definately not consumer pricing, but certainly no more than existing data plans. Once you start playing with the internet with it you will definately want an unlimited data plan.

    Still, it’s pretty pricey for the home user market. That said, Apple has always targeted their new products to the more afluent. It won’t be long before they have a regular phone that doens’t have the internet capabilities and is priced more competitively. Patience.

  4. The phone would cost full price, the monthly plans would be slighly lower than their typical plan (but they would still make more due to no subsidizing of the phone) and the contract they would push would be a one-year plan.

    They would sells these by the boatload, and to keep people onboard for another 1 year or 2 year plan they can count on Apple delivering more candy in the near future.

  5. $75-100 per month, are you crazy??? I was all set to get an iPhone, assuming they were had a reasonable or slightly cheap monthly plan, considering how expensive the hardware is and how they want to attract new customers. But that price is just ridiculous, I can’t afford to pay that every goddamn month! I hope that price is wrong. (Why can’t they have an affordable subscription that people would actually consider fair? They would make more money that way.)

    If the subscription price is really that bad, then I’m just going to have to wait for a touchscreen Wifi ipod (or get the iPhone w/o a subscription plan)

  6. it’s a scam. i could use cingular’s media set for 19.99 and it works. Though cingular reps will ry to persuade you otherwise. they tried that on me for a euro nokia phone. it can’t work it can’t work. guess what . it works.

  7. Go to Cingular’s website guys! The prices are very competitive with cheap @$$ T-mobile!

    Quit freaking out about an estimate. That is probably the average that people pay anyways. I pay 89.00 for a family plan of 1400 hundred minutes. Thats pretty good.

    Not to mention Cingular has a cheaper per text message charge as well. Cingualr (AT&T) is a good co. I have used EVERY other carrier and I have just recently come back to AT&T from crappy Verizon (worst company today ever)

    In the words of Conan – “Chill my babies”

  8. I would love to buy an iphone but I’m in NH and I think Cingular’s network sucks here. I’m not willing to pay 600 bucks for a phone and then having to switch my number over to Cingular’s network only to find that I can’t get a signal.

    Hey Cingurlar, improve your New Hampshire coverage and I’ll consider getting an iphone.

    Until then I’m sticking with Verizon. A cell phone that can’t get a signal is useless to me, no matter how cool it is.

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